Mortgage Servicing Rights (Tables)

3 Months Ended

Mar. 31, 2018

Mortgage Servicing Rights

Schedule of estimated future amortization expense for mortgage servicing assets

Amortization of mortgage servicing rights (“MSRs”) was $1.0 million for both the three months ended March 31, 2018 and 2017. The estimated future amortization expense for MSRs over the next five years is as follows:

	Estimated
(dollars in thousands)	Amortization
Under one year	$	2,593
One to two years		2,296
Two to three years		2,034
Three to four years		1,799
Four to five years		1,591

Schedule of gross carrying values, accumulated amortization, and net carrying values of mortgage servicing assets

	March 31,		December 31,
(dollars in thousands)	2018		2017
Gross carrying amount	$	63,022	$	56,571
Less: accumulated amortization		44,363		43,375
Net carrying value	$	18,659	$	13,196

Schedule of changes in amortized mortgage servicing assets

	Three Months Ended March 31,
(dollars in thousands)	2018		2017
Balance at beginning of period	$	13,196	$	16,809
Originations		7		3
Purchases		6,444		—
Amortization		(988)		(1,012)
Balance at end of period	$	18,659	$	15,800
Fair value of amortized MSRs at beginning of period	$	21,697	$	25,160
Fair value of amortized MSRs at end of period	$	29,048	$	24,495

Schedule of quantitative assumptions used in determining lower of cost or fair value of MSRs

	March 31, 2018							December 31, 2017
						Weighted							Weighted
	Range					Average		Range					Average
Conditional prepayment rate	7.76	%	-	18.94	%	8.12	%	8.53	%	-	19.63	%	9.04	%
Life in years (of the MSR)	3.40		-	8.01		7.35		3.29		-	7.15		6.76
Weighted-average coupon rate	3.96	%	-	6.77	%	4.02	%	3.97	%	-	6.79	%	4.04	%
Discount rate	10.50	%	-	10.50	%	10.50	%	10.50	%	-	10.52	%	10.50	%